Non-Resident Nebraska Income Tax Tuition Credit

Thank you for your interest in the Non-resident tuition credit offered to Nebraska taxpayers. The following is a summary of the credit and its application process.

The credit applies to any non-resident student who works in Nebraska and pays Nebraska income taxes. Students may also use their parents’ tax liability if they are claimed as a dependent on their parents' Federal Tax Return, or in the case of divorce/custody situations they may still be eligible if they can provide sufficient documentation supporting residence with the Nebraska taxpayer. The credit is to be considered an entitlement, not to be confused with the UNO Advantage Scholarship. There are no minimum GPA or class rank requirements. The credit is meant to offer a tuition break to non-resident students. It may not be used to lower tuition rates below the normal charge for resident students. The total allowable credit can be used by only one student per household, or split between all students from the same household.

If the credit for the first term exceeds the allowable amount, any carryover will automatically be used for the following term within the same academic year. A student will need to file only one application per academic year. The tax credit will take priority over the UNO Advantage Scholarship. A student who is eligible for both will need to exhaust all of their tax credit before taking advantage of the scholarship.

An application form for the tax credit can be picked up at the Cashiering/Student Accounts office. The form is also available on our website at www.ses.unomaha.edu/cash. It needs to be completed in full and returned to the Cashiering/Student Accounts office along with all applicable federal and state tax returns. Students who are claimed as dependents on their parents’ returns may use their parents’ taxes paid in addition to or instead of their own. These students should also include their parents’ tax forms. Students who are considered a dependent of the parent they are not residing with may use the residing parent’s taxes if they can show proof that they live with the Nebraska taxpayer instead of parent claiming residency.

Any questions concerning the Non-resident Nebraska Income Tax Tuition Credit may be addressed to the Cashiering/Student Accounts office. Please call us at 554-2324 or stop in with questions.

I plan on attending the Fall 2007, Spring 2008 or Summer 2008 term.

I plan on attending the Fall 2006, Spring 2007 or Summer 2007 term.

I have a question regarding the Non-Resident Nebraska Income Tax Tuition Credit.

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Important Tax Information

Hope and Lifetime Learning Tax Credits

The Tax Relief Act of 1997 (TRA97) established two education tax credits, a tuition and fee deduction, and a student loan interest deduction. Please refer to the following resources, particularly to IRS Publication 970, for more information regarding the education tax credits and deductions, and how to claim them.

National Assoc. of Student Financial Aid Administrators’ Parent and Student Guide to Federal Tax Benefits for Tuition and Fees:
http://www.nasfaa.org/annualpubs/TaxBenefitsGuideIntroPS.html

IRS Publications

Publication 970 (PDF), Tax Benefits for Higher Education
http://www.irs.gov/pub/irs-pdf/p970.pdf

Form 8863 and Instructions (PDF), Education Credits (Hope and Lifetime Learning Credits)
http://www.irs.gov/pub/irs-pdf/f8863.pdf

Tax Topic 605, Education Credits
http://www.irs.gov/taxtopics/tc605.html

Frequently Asked Tax Questions and Answers, Education Tax Credits
http://www.irs.gov/publications/p970/index.html

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1098T Forms

The University of Nebraska at Omaha (UNO) will generate and mail 1098T forms to all students who were enrolled at UNO during the Tax Year just ended. The forms will be mailed at the end of January.

Per IRS regulations, institutions must select whether they will report qualified payments received in box 1, or qualified tuition and fees billed in box 2 of the 1098T form. The University has elected to report based on qualified tuition and fees billed, and therefore completes box 2 of the 1098T form.

Box 2 will show the qualified tuition and fees, less any related reductions in charges that were billed during the tax year. The amount in box 2 may represent an amount other than the amount actually paid during the tax year against the appropriate charges. Please consult the IRS publications listed above and your tax advisor for help in determining amounts you may be able to claim.

Box 4 will show all qualified scholarships, grants, and waivers that appeared on your billing statement for those terms during the tax year.

During tax year 2003, the IRS does not require boxes 3 and 5 to be completed since financial data did not appear on the 1098T form in prior tax years. Beginning with the 2004 tax year, these boxes will contain any reductions to amounts reported in boxes 2 and 4 on the 1098T form in a prior tax year.

1098T Reprints –

If you need an additional copy of your 1098T, reprints of 1098T forms from the tax year 2003 and forward will be available from EBRUNO. For tax years prior to 2003, please print this request form and complete the upper portion. Send the completed form to us, or bring it in person to Eppley Administration Building, Room 109.

1098T Supplemental Information –

The University of Nebraska at Omaha (UNO) will generate supplemental billing detail to aid you in understanding the amounts that appear on your 1098T. This supplemental detail will be available through EBRUNO. This form will list, by term, the tuition and fees billed, and credits posted, to your account for the terms billed during the tax year.

Keep in mind that the supplemental information is provided to assist you in computing amounts that may be eligible for the tax credits or deductions, and does not represent tax advice from this institution. Please consult the IRS publications listed above and your tax advisor for help in determining amounts you may be able to claim.

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1098E Forms

The 1098E form verifies the amount of interest paid on student loans. The form will be mailed from your student loan lender. If you received a Federal Perkins Loan from UNO and paid interest on your loan during the Tax Year just ended, then you will receive a 1098E form from our billing service, AMS Servicing Group (AMS). Keep in mind that the 1098E form from AMS will reflect only the interest paid on your Perkins Loan from UNO. It is possible that you will receive several 1098E forms - - one from each of your student loan lenders.

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